The consumption tax reform regulations provide for tax exemptions for 383 medicines and vaccines, including vaccines against Covid-19, dengue fever and yellow fever. The text, sent to the National Congress on Wednesday, 26th, also proposes a reduction in the rate by 60% for 850 medicines.
Among the exempted medicines are vaccines against covid-19, dengue, yellow fever, flu, cholera, polio and measles, as well as substances such as insulin (used for diabetes) and the antiviral abacavir (used against HIV). Sildenaphilia citrate (used to treat erectile dysfunction) will also not pay tax.
Among the active ingredients with a reduced rate are omeprazole (used to treat reflux and digestive ulcers), the anxiolytic lorazepam, the high blood pressure medication losartan, metmorphine (used for diabetes), the anti-inflammatory, anti-allergic and anti-rheumatic prednisone and the sexual impotence medication tadaphilia.
The complementary bill regulates the collection of Value Added Tax (VAT). This tax is made up of the Contribution on Goods and Services (CBS), collected by the federal government, and the Tax on Goods and Services (IBS), which is the responsibility of states and municipalities. The government’s expectation is to approve the text by the end of July in the Chamber and by the end of the year in the Senate.
Source: Agência Brasil
